UPDATED, July 3, 6:15PM:Digital Domain issued a statement today to clarify any misconceptions about its ownership in the wake of the deal: “A press release issued on July 2, 2014 announcing the purchase of a 30.2% stake by Mumbai-based Reliance Media Works in Prime Focus Ltd. implied that Prime Focus now has access to or control over the visual effects house Digital Domain 3.0. This transaction had no effect on the management and control of Digital Domain 3.0, which remains unchanged. Digital Domain Holdings Limited in Hong Kong continues to be the majority owner of Digital Domain 3.0.”

PREVIOUSLY: The deal, announced in India overnight, is Prime’s latest move to build a globe-girdling VFX and media-services company, and it comes just days after Prime Focus World merged with Oscar-winning UK effects house Double Negative. The newest deal will merge Reliance Capital subsidiary Reliance MediaWorks’ film and VFX operations — which also include Lowry Digital, a 30-percent share of Digital Domain and 1M square feet of production and post-production facilities in Mumbai — to make what the companies called the world’s largest independent VFX and animation house. Money from the Reliance buy-in, an infusion of about $40 million, will finance the Double Negative merger and further expand operations, the companies said in a release. In return, Reliance Capital will get a 30-percent stake in the merged company, which will headed by Prime Focus executive Chairman and CEO Namit Malhotra. Reliance previously held a stake in Prime Focus, but exited after Prime went public in 2006. (more…)